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What is the main difference between direct method and memorandum method?

Answer and explanation

Correct answer: Direct method does not open goodwill account while memorandum method opens it temporarily

Both aim at goodwill adjustment but the method differs. In exams focus on whether goodwill account is opened or not.

Related tags

GoodwillDirect-MethodMemorandum-MethodGoodwill SettlementReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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